Rural Economic Development Loan and Grant Program (REDL and REDG)

A list of Rural Development State Office contacts is available on the USDA website.

The Rural Economic Development Loan and Grant Program (REDL and REDG) is designed to promote rural economic development and job creation projects.

REDLG provides funding to rural projects through local utility organizations. Examples of eligible projects include:

• Facilities and equipment for medical care to rural residents
• Start-up venture costs, including, but not limited to financing fixed assets such as real estate, buildings (new or existing), equipment, or working capital
• Business expansion
• Technical assistance
• Business Incubators
• Community development assistance to nonprofits and public bodies (particularly job creation or enhancement)
• Facilities and equipment for education and training for rural residents to facilitate economic development

Eligible applicants include:

• Any former Rural Utilities Service borrower who borrowed, repaid or pre-paid an insured, direct, or guaranteed loan
• Nonprofit utilities that are eligible to receive assistance from the Rural Development Electric or Telecommunication Programs
• Current Rural Development Electric or Telecommunication Programs borrowers

Grants: Up to $300,000

Loans: Up to $2,000,000

Up to 10% of grant funds may be applied toward operating expenses over the life of a revolving loan fund.

Entities wishing to apply for assistance should contact the appropriate Rural Development State Office to receive further information and copies of the application package.

Submit application in a paper format to the USDA state office where the project is located. State-level deadlines may differ from the federal deadline.